2019 was a period of oversupply for the display panel industry, with panel manufacturers' profit margins falling sharply as panel prices plummeted and some panel manufacturers had to seriously consider capacity restructuring or factory shutdown.
Oversupply has led some panel manufacturers to reduce capacity utilization on their production lines, including even new ones. However, some panel manufacturers have taken different steps, not to reduce capacity utilization to limit the output of lcd tv panels, but to increase the production of it panels (monitors, laptops and tablets), or they have transferred some of the capacity to make televisions to more capacity suitable for it, such as ultra-thin borders and ips, and so on.
Due to stable demand and the support of many high-end models (such as high resolution, wide viewing angle, curved screen display, ultra-thin border notebook computer, e-sports display, etc.), the demand for notebook panel and display panel is relatively stable. Although the price of mainstream panel has decreased, but it is far less than the decline of tv panel price.
The following two tables show a decline in the prices of notebook and display mainstream panels from April 2019 to December 2019, ihs markit / technology data show that the price of mainstream notebook panels and display panels fell little and the percentage remained stable, which was significantly different from the collapse in the price of lcd tv (open cell).
The price of a stable panel can help the panel manufacturer to maintain a certain level of profitability. According to the ihs markit | technology data, the price of the notebook panel and the price of the display panel are relatively stable, and the price of the liquid crystal production line is not rapidly lower due to the excess capacity of the liquid crystal production line, which is based on the following reasons:
There is no new it panel production line: In recent years, the newly increased production capacity is almost exclusively used for lcd tv applications and smart phone display applications, especially on the mainland of china. The manufacturers of display panel, such as Beijing-orient, Huaxing, Huike, Rainbow, and CLP Panda, are producing 8.5, 8.6 and 10.5 generations of products for TV, and the display and display screens of the notebook are not the most recent areas of concern to the manufacturers of the display panel.
Mature and stable application: Although it is considered a traditional application, the demand is always stable.
The mainstream pc brand has strict requirements on the product quality, and has established a cooperative channel with the existing suppliers such as the beijing-oriental, samsung display, lg display, friendly, group-based and other existing suppliers. As a result, the new jinja, such as the Whey, Huaxing and CLP, are more difficult to expand the business and occupy the market share. For example, four leading vendors on the pc market, Dell, HP, Lenovo, and Apple, have very strict specifications and quality requirements for integrating the display into their personal computers, most of which are custom-made. This poses a challenge to the manufacturers of China's new-in-China display.